History of NERC

August 2013

Timeline

Date Description

1962–1963

The electricity industry creates an informal, voluntary organization of 

operating personnel to facilitate coordination of the Bulk-Power System in 

the United States and Canada. Four interconnected transmission systems 

are connected to three more systems, forming the largest electricity grid in 

the world. In January 1963, the North American Power Systems 

Interconnection Committee (NAPSIC) is formed.

November 9, 1965

The largest blackout to date in history occurs, 30 million lose power in the 

northeastern United States and southeastern Ontario, Canada. New York 

City and Toronto are among the affected cities. Some customers are

without power for 13 hours.

1967

Legislation (U.S. Electric Power Reliability Act of 1967) proposes the 

creation of a council on power coordination. Although not enacted, the 

proposed legislation stimulates the development of an industry electric 

reliability council.

1967–1968

Federal Power Commission (predecessor of the Federal Energy Regulatory 

Commission) recommends the formation of a council on power 

coordination made up of representatives from each of the nation’s regional 

coordinating organizations, to exchange and disseminate information and 

to review, discuss and assist in resolving interregional coordination matters.

June 1, 1968

National Electric Reliability Council (NERC) is established by the electricity 

industry in response to the 1965 blackout and the recommendation of the 

Federal Power Commission. Nine regional reliability organizations are

formalized under NERC. Also formalized are regional planning coordination 

guides, which NERC maintains. The utilities maintain and practice voluntary 

NAPSIC operating criteria and guides.

July 13–14, 1977

New York City blackout occurs. This leads to the first limited reliability 

provision in federal legislation. The legislation enables the federal 

government to propose voluntary standards, an authority never exercised.

1979

Report to NERC by Joseph Swidler, former chair of the Federal Power 

Commission, with recommendations with respect to the substantive role of 

NERC in light of the Public Utility Regulatory Policy Act of 1978 (PURPA).
History of NERC 2

1980

NAPSIC becomes part of NERC, forming the NERC Operating Committee and 

bringing the reliability roles of operations and planning together in one 

organization. NERC adopts NAPSIC operations criteria and guides.

1981

NERC changes its name to the North American Electric Reliability Council in 

recognition of Canada’s participation and to more accurately reflect the 

broader scope of NERC’s membership.

1987

NERC forms a committee to address terrorism and sabotage of the 

electricity supply system at the urging of the National Security Council and 

Department of Energy.

1992

NERC Board of Trustees states for the first time that conformance to NERC 

and regional reliability policies, criteria and guides should be mandatory to 

ensure reliability, in one of six Agreements in Principle adopted by the 

Board. (At that time, NERC had no authority to enforce compliance with the 

policies, criteria and guides.)

1993

Building on the Agreements in Principle, NERC publishes “NERC 2000,” a 

four-part action plan for the future that recommends mandatory 

compliance with NERC policies, criteria and guides and a process for 

addressing violations. “NERC 2000” encompasses policies for 

interconnected systems operation, planning reliable bulk electric systems, 

membership, and dispute resolution.

1995

Federal Energy Regulatory Commission (FERC) issues Notice of Proposed 

Rulemaking on Open Access proposing to encourage more fully competitive 

wholesale electricity markets. NERC files six-point action plan to address the 

planning and operating reliability aspects of the NOPR.

1996

Two major blackouts in the western United States prompt the Western 

Systems Coordinating Council (WSCC) to develop the Reliability 

Management System in which members enter voluntarily into agreements 

with WSCC to pay fines if they violated certain reliability standards. (WSCC, 

a regional reliability organization, is now the Western Electricity 

Coordinating Council.)

1997

Electric System Reliability Task Force established by the Department of 

Energy and an independent Electric Reliability Panel (“Blue Ribbon” Panel) 

formed by NERC both determine grid reliability rules must be mandatory 

and enforceable in an increasingly competitive marketplace. Both groups 

recommend the creation of an independent, audited self-regulatory electric 

reliability organization to develop and enforce Reliability Standards 

throughout North America. Both groups conclude that federal legislation is

necessary. NERC begins converting its planning policies, criteria and guides 

into standards.
History of NERC 3

1999

Nine independent directors added to the NERC Board, joining the president 

and 37 industry stakeholder members in anticipation of NERC becoming an 

audited self-regulatory organization.

Broad coalition of industry, state and consumer organizations propose 

legislation in the United States that would create an electric reliability 

organization to develop and enforce mandatory reliability rules, with 

oversight in the United States by FERC.

2000

NERC appointed as the electric utility industry’s primary point of contact 

with the U.S. government for national security and critical infrastructure 

protection issues. NERC establishes the Electricity Sector Information 

Sharing and Analysis Center.

Proposed reliability legislation first introduced in U.S. Congress by Senator 

Slade Gorton of Washington.

2001

NERC governance changed. Board replaced with a 10-member independent 

board. Stakeholders Committee created. (The Stakeholders Committee 

name was later changed to the Member Representative Committee.)

May 1, 2002 NERC operating policies and planning standards become mandatory and 

enforceable in Ontario.

August 14, 2003 North America experiences its worst blackout to date, as 50 million people 

loose power in the northeastern and midwestern United States and 

Ontario, Canada. U.S. – Canada Power System Outage Task Force formed to 

investigate the causes of the blackout and to make recommendations to 

prevent future blackouts.

February 2004 NERC Board approves making the Critical Infrastructure Protection Advisory 

Committee a permanent standing committee of the Board.

April 5, 2004

Final report of the U.S. – Canada Power System Outage Task Force on the 

2003 blackout concludes the single-most important recommendation for 

preventing future blackouts, and reducing the scope of those that occur, is 

for the U.S. government to make Reliability Standards mandatory and 

enforceable.

Summer 2004

Bilateral Electric Reliability Oversight Group (BEROG) established as a forum 

for identifying and resolving reliability issues in an international, 

government-to-government context. BEROG grew out of the U.S. – Canada 

Power System Outage Task Force.
History of NERC 4

November 12, 2004

NERC translates its operating policies, planning standards and compliance 

requirements into an integrated and comprehensive set of 90 measurable 

standards called “Version 0 Reliability Standards.”

February 2005 NERC Board approves dissolution of the NERC Market Committee and 

endorses continued cooperation and coordination with North American 

Energy Standards Board (NAESB).

April 1, 2005 Version 0 Reliability Standards become effective. Voluntary compliance 

expected as a matter of good utility practice.

May 2005 NERC Board approves scope of the Compliance and Certification Committee 

to provide stakeholder oversight to the Compliance and Certification 

Programs.

August 8, 2005 Energy Policy Act of 2005 authorizes the creation of an audited selfregulatory “electric reliability organization” that would span North America, 

with FERC oversight in the United States. The legislation states that 

compliance with Reliability Standards would be mandatory and enforceable. 

April 4, 2006 NERC files an application with FERC to become the electric reliability 

organization in the United States. 

NERC files 102 Reliability Standards with FERC—the 90 Version 0 standards 

plus 12 additional standards developed in the interim.

NERC files the same information with the Canadian provincial authorities in 

Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, 

Quebec and Saskatchewan, and with the National Energy Board of Canada, 

for recognition as the electric reliability organization in Canada. 

July 20, 2006 FERC certifies NERC as the electric reliability organization for the United 

States.

November 2006 NERC Board approves the charter of the Transmission Owners and 

Operators Forum.

September–December 2006 NERC signs memorandums of understanding with Ontario, Quebec, Nova 

Scotia and the National Energy Board of Canada.

January 1, 2007 The North American Electric Reliability Council becomes the North 

American Electric Reliability Corporation. The new entity has a large 

membership base representing a cross-section of the industry.
History of NERC 5

March 15, 2007 FERC approves 83 NERC Reliability Standards, the first set of legally 

enforceable standards for the U.S. Bulk-Power System, effective June 

2007. FERC stated that voluntary compliance with NERC’s additional 

standards should continue as good utility practice. 

April 19, 2007 FERC approves agreements by which NERC delegates its authority to 

monitor and enforce compliance with NERC Reliability Standards in the 

United States to eight Regional Entities, with NERC continuing in an 

oversight role.

June 18, 2007 Compliance with approved NERC Reliability Standards becomes mandatory 

and enforceable in the United States.

August 2007 NERC Board endorses the DOE Energy Sector Specific Plan and

agrees to undertake the activities as called upon in support of the Plan.

October 2007 NERC Board approves Transmission Availability Data System data collection.

July 2009 NERC files Three-Year ERO Performance Assessment with FERC.

November 2009 NERC approves resolution terminating the formal relationship with the 

North American Transmission Forum (formerly the Transmission Owners 

and Operators Forum).